HDB Financial Services Share Price Jumped Nearly 10% – Here’s Why

However, despite the recovery, the stock is still down by over 23% compared to its initial listing prices since July 2025. Nevertheless, the stock has gained close to 30% from its year's low of ₹557 marked on March 30, 2026.

HDB Financial Services Q4 Earnings Drive Rally

The net profit of HDB Financial Services was ₹751 crore in the Q4FY26, reflecting a significant 41.4% YoY rise compared to ₹531 crore in the previous year's fourth quarter. The improvement in the performance of the company is mainly due to lower credit costs, higher asset quality, and stable loan demand.

The NII of the firm improved by 21.6% YoY to ₹2,399 crore, and the overall income improved 17.1% YoY to ₹3,063 crore. The interest income of the firm during the quarter was ₹4,081 crore, recording a 13% YoY improvement. In the fiscal year 2026, the firm's profit increased by 17% to ₹2,544 crore.

The provisions and loan losses of the firm were ₹685 crore, increasing by 8% YoY.

AUM and loan growth remain moderate

The total AUM of the company amounted to ₹1,18,733 crore as on March 31, 2026, marking a growth rate of 10.7% year-on-year. The gross loan book of the company increased by 10.9% to about ₹1.18 lakh crore.

The growth rate has been moderate thus far, positive indicators can be seen. Disbursement activity is improving, and more AUM growth is anticipated.

Asset quality improves, credit costs decline

The asset quality trends demonstrated sequential improvement, which was one of the positives for the company. Gross stage 3 loans were at 2.44%, while net stage 3 loans were at 1.09%, both slightly higher than in the previous year. The provision coverage ratio on stage 3 assets was at 55.53%.

Margins and management commentary

The margins witnessed an increase by approximately 14-15 basis points, aided by a drop in the cost of funds. According to management, the decline in yields was marginal due to the change in mix but is expected to improve with growth in unsecured loans.

The company hopes to maintain NIM at levels above 8%. Moreover, it mentioned that there has been no impact on the performance due to any geopolitical unrest, including the one involving West Asia, although it keeps an eye on the developments.

Dividend 

The company’s board recommended a final dividend of ₹2 per equity share (face value ₹10) for FY26, subject to shareholder approval.

Outlook

HDB Financial Services has had a good earnings performance on the back of an improved asset quality position, decreased credit expenses, and stable margins. Despite still having relatively modest growth in its earnings at the moment, there is evidence to suggest that there could soon be some acceleration with regard to improvements in both disbursements and the brokerage industry environment.